In the second inflation report of the year, the Central Bank of the Republic of Turkey (CBT) raised its inflation expectations for 2021 from 9.4 percent to 12.2 percent.
Speaking at the Inflation Report Information Meeting, Central Bank Governor Shahap Kavcioglu said, “Inflation is expected to reach 12.2 percent by the end of 2021, 7.5 percent by the end of 2022 and to stabilize at the end of 2023 at the end of 2023. Thus, 2021 at the end of the year, we raised the inflation forecast from 9.4 percent to 12.2 percent with an update of 2.8 points, “he said.
Inflation will remain at its highest level in April, Kavcioglu said, “Although inflation has declined slightly due to the weakening of aggregate exchange rate effects on key commodities, food and services have increased. We expect inflation to continue to improve in April, but will remain high.” does not yet indicate a slowdown to the extent we want. “
Hard money situation will be protected
Stating that the impact of demand and financing on inflation is still important in the context of global and domestic macroeconomic review, Kavcioglu said that the current levels of inflation expectations protect the risks associated with price behavior and inflation outlook. Kavcioglu said, “The current review calls for a strong monetary position to continue with great determination and patience until there are indications of a lasting decline in inflation expectations and inflation trends.” He said.
Stressing that they know that macroeconomic stability is a prerequisite for sustainable growth and employment growth, the Central Bank Governor said, “Based on this, we will continue to use all our tools to ensure price stability in the future.”
Kavcioglu, “In the context of tight monetary position, inflation expectations, price behavior and developments in the financial market will play an important buffer against external and temporary volatility,” said Kavcioglu, “until strong indicators point to a steady decline in inflation and our medium-term policy Our interests will prevent the effects of strong inflation, and we will continue to build on actual and expected inflation to protect it.
DHA, DW / JD, HT
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